P Ltd. has 60% voting right in Q Ltd. Q Ltd. has 20$ voting right in R Ltd. Also, P Ltd. directly enjoys voting right of 14% in R Ltd. R Ltd. is a listed company and regularly suppliers goods to P Ltd. The management of R Ltd. has not disclosed its relationship with P Ltd.
How would I assess the situation from the viewpoint of AS -18 on Related Party Disclosures?
The mgmt is correct becaz P holds 34% in R(20% indirectly and 14% directly). and R ldd is also not a associate of P.i m 100% sure.
Is this means........ that Indirect investment by a company through its subsidiary in another company will not be considered while determining a company as an associate of the Holding Company?
CAclubindia
